Savings Account Interest is Not Taxable up to a Certain Limit | NEW Section 80TTB | FinCalC [VIDEO]

Did you know that Savings Accounts Interest is Not Taxable? Well, that is half of the actual information. There is a limit up to which Savings Account interest is NOT Taxable and you need not have to pay Income Tax if the interest is less than that limit.

For the FY 2018-19 (AY 2019-20), the limit is Rs. 10,000 for the people of age below 60 Years and Rs. 50,000 for the people of Age 60 Years or above.

The deduction can be claimed under SECTION 80TTA (Age below 60 Years) or New SECTION 80TTB (60 Years or above)

WATCH VIDEO:

How Deduction can be Claimed?

1. Add Savings Account Interest money under "Income From Other Sources" while calculating your Income Tax or filing ITR (Income Tax Return)

2. If your age is below 60 Years, claim this interest money under Section 80TTA (Max Rs. 10,000)

3. If your age is 60 Years or above, claim this interest money under Section 80TTB (Max Rs. 50,000)

4. This helps you in NOT paying Income Tax on max Rs. 10,000 if your age is less than 60 years, and on max Rs. 50,000 if you are a Senior Citizen.

Important Points to Note

1. Section 80TTA includes interest money from Savings Account only. It is for people of Age below 60 Years.

2. Section 80TTB includes interest money from Savings Accounts, Fixed Deposits and Recurring Deposits. It is only for Senior Citizens with Age 60 Years or above.

So remember to keep your Savings Account Interest money below Rs. 10,000 in FY 2018-19 to get benefits of Section 80TTA if your age is less than 60 Years. Even if the interest is more than Rs. 10,000, you pay Tax only on the additional interest money above Rs. 10,000.

For senior citizens, the limit is Rs. 50,000 under Section 80TTB and includes interest money from Fixed Deposits and Recurring Deposits as well.
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